Moody's rates Korea Southern Power notes A1

Moody's Investors Service said it assigned an A1 senior unsecured foreign-currency rating to Korea Southern Power Co Ltd.'s proposed five-year $300 million notes, and affirmed its A1 local-currency issuer rating. The outlook is stable.

The rating takes into account the company's sound financial profile, which is predicated on sustainable growth in electricity demand and a supportive regulatory environment, Moody's said.

Despite the company's higher business risk profile as a pure generation company and its large capital expenditure, it can pass on any increase in its costs to its parent, Korea Electric Power Corp. (rated A1 with stable view) under the existing cost-based pool system, thereby ensuring a stable earnings profile, the agency said.

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